Reportable Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Reportable Segments

Note B - Reportable Segments

Kforce’s two reportable segments are Technology and FA. Within each segment, we provide highly skilled professionals on a Flex and Direct Hire basis to our customers on traditional staffing engagements and increasingly, within our Technology segment, as a part of an overall solutions engagement. The chief operating decision-maker (“CODM”), our President and Chief Executive Officer, establishes the strategic direction of the Firm, its priorities and longer-term financial objectives. Our CODM is ultimately responsible for evaluating segment performance and making decisions regarding resource allocation. Our CODM evaluates performance based on, among others, revenue trends (relative to peers and market benchmarks) and segment gross profit, and other key leading indicators such as client visits, job order trends for traditional staffing assignments, opportunity pipeline reviews for solutions-oriented engagements, and trends in consultants on assignment. The CODM uses these financial metrics and productivity measures when making decisions about allocating capital and resources to the segments.

Segment gross profit is defined as segment revenue, less direct costs attributable to the reportable segment. The CODM is not provided income from operations or asset information by reportable segment as operations are largely combined.

The following table provides information on the operations of our segments:

(in thousands)	Technology		FA		Total
Three Months Ended March 31,
2025
Revenue	$	306,284	$	23,744	$	330,028
Direct costs	227,100		14,668		241,768
Gross profit	$	79,184	$	9,076	$	88,260
Less:
Selling, general and administrative expenses					75,165
Depreciation and amortization					1,464
Other expense, net					565
Income before income taxes					$	11,066

2024
Revenue	$	322,084	$	29,805	$	351,889
Direct costs	238,047		18,592		256,639
Gross profit	$	84,037	$	11,213	$	95,250
Less:
Selling, general and administrative expenses					78,190
Depreciation and amortization					1,333
Other expense, net					656
Income before income taxes					$	15,071